MAPFRE Earns $51.2 Million in North America in
First Half of 2014, on Premiums of $1.3 Billion

MAPFRE COMMERCE records $1.1 billion in premiums through June, a
3.9 percent rise on the same period last year.

The Group posts global revenues of $18.8 billion, with $627 million
in earnings.

July 25, 2014 01:04 PM Eastern Daylight Time

MADRID--(BUSINESS WIRE)--MAPFRE generated premium volume of $1.3 billion in North America in the
first half of 2014, producing $51.2 million in profits. The region
accounts for 8 percent of the company’s global premiums, which amounted
to $16.1 billion in the past six months, and 5.2% of total profits, of
$628 million.

The U.S. market contributed premiums of $1.1 billion in the first half,
(up 3.9 percent), driven by strong Motor and Home business performance,
(up 2.6 and 9.6 percent respectively) and earnings of $43 million.
Puerto Rico accounted for $202 million in premiums and $7.9 million in
profits, (up 42.9 percent from last year).

2.- Global figures

MAPFRE generated premium volume of $16.1 billion in the first half of
the year, similar to the figure for the same period of the previous
year, and produced attributable earnings of $628 million, up 0.4
percent. Revenues stood at $18.8 billion, a figure in line with that of
the preceding year. The first half was characterized by the strength of
the euro against the company’s key trading currencies; at constant
exchange rates, premiums would have grown by 8 percent and profits by 7
percent.

Earnings before taxes and minority interests reached a new first-half
high for MAPFRE, increasing by 8.7 percent to $1.29 billion, having
risen by 45 percent since the onset of the financial crisis in 2007.

During the first six months of the year, business was robust, resulting
in the company recording an excellent combined ratio. Moreover, equity
grew by $1.1 billion in the period, to $14.6 billion, due in part to
falling spreads in Spain. Likewise, unrealized capital gains recognized
in equity have shown a rise of over $2.1 billion since the previous
year-end.

Non-Life premiums in the first half totaled $11.8 billion, (down 0.5
percent), but the second quarter saw a year-on-year increase, (up 1.4
percent). This pick-up was particularly strong in Brazil and Mexico,
confirming a change in trend in the Iberia Regional Area. The Life
business posted premiums of $4.3 billion, (up 1.4 percent), with Brazil
performing exceptionally well during the second quarter of the year.

Shareholders’ equity stood at $11.6 billion, an 8.3 percent rise since
year-end 2013, and total managed assets were $99 billion, an increase of
7.2 percent over the last twelve months. Managed savings were up 12
percent, to $50.6 billion.

Furthermore, the Standard & Poor’s ratings agency in May raised the
counterparty credit ratings of MAPFRE RE and MAPFRE GLOBAL RISKS to “A”,
and those of the Group’s parent company to “BBB+”, all of them with
outlook stable. These upward revisions come on the back of those issued
by this and other ratings agencies during the six first months of the
year, and reaffirm the financial strength of MAPFRE and its subsidiary
companies.

2.- Other Regional Areas:

The IberiaRegional Area generated premiums of $5.9
billion, which represents a 0.3 percent rise with respect to the period
ended June 2013. In Spain, premiums totaled $5.7 billion, reflecting the
improvement in the Motor business –which recorded premiums of $1.4
billion, in line with market performance–, the positive development of
the Health line, which rose 6.9 percent, (more than double the growth
level recorded by the sector), and the Multi-peril insurance line, where
MAPFRE’s growth is more than double that of the market. As regards Life
Assurance, premiums amounted to $2 billion, 1 percent higher than the
first half of 2013 (versus the 6.25 percent decline recorded by the
sector). Mutual funds and managed portfolios, as well as pension funds,
rose in the first half by 22.5 and 9.3 percent, respectively.

Premiums from the BrazilRegional Area grew 1.1 percent,
to $3.7 billion, up 19.1 percent in local currency terms. The Motor
insurance business performed very well in an exceptionally competitive
market. Likewise, the company’s growth in the Industrial Risks and
financing-linked insurance products businesses in the second quarter of
the year merits special mention.

The LATAM South Regional Area reported premium volume of $1.9
billion, which represents a 2.3 percent drop, although significant
increases were recorded in the region’s principal countries in local
currency terms.

Premiums from the LATAM NorthRegional Area stood at $887
million (up 4.1 percent). Of note is the contribution from Mexico, where
premiums grew 1 percent (up 9.9 percent in local currency terms), to
$593 million euros, driven by the strong recovery in the Non-Life
business in the second quarter, where the Motor and Industrial Risks
lines made a strong contribution.

Premium volume from the EMEARegional Area amounted to
$843 million, (down 5.2 percent). In this region, the Turkish market
stands out, producing $386 million in premiums, representing a 10.5
percent increase in local currency terms, in the face of fierce
competition across all lines.

Premiums in the APACRegional Area grew by 13 percent, to
$63.2 million, with the Philippines contributing $23.8 million.

3.- Development of the reinsurance business:

Premiums from the reinsurance business totaled $2.6 billion, (up
1.9 percent), due in the main to new Life Assurance contracts. Net
income from the business rose 14.9 percent, to $93 million, in spite of
the increase in the loss ratio in the second quarter of the year.